Correlation Between Multi Medika and Weha Transportasi
Can any of the company-specific risk be diversified away by investing in both Multi Medika and Weha Transportasi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Multi Medika and Weha Transportasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Medika Internasional and Weha Transportasi Indonesia, you can compare the effects of market volatilities on Multi Medika and Weha Transportasi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Multi Medika with a short position of Weha Transportasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Medika and Weha Transportasi.
Diversification Opportunities for Multi Medika and Weha Transportasi
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Multi and Weha is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Multi Medika Internasional and Weha Transportasi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weha Transportasi and Multi Medika is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Multi Medika Internasional are associated (or correlated) with Weha Transportasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weha Transportasi has no effect on the direction of Multi Medika i.e., Multi Medika and Weha Transportasi go up and down completely randomly.
Pair Corralation between Multi Medika and Weha Transportasi
Assuming the 90 days trading horizon Multi Medika Internasional is expected to generate 2.27 times more return on investment than Weha Transportasi. However, Multi Medika is 2.27 times more volatile than Weha Transportasi Indonesia. It trades about 0.07 of its potential returns per unit of risk. Weha Transportasi Indonesia is currently generating about 0.0 per unit of risk. If you would invest 6,400 in Multi Medika Internasional on September 2, 2024 and sell it today you would earn a total of 1,100 from holding Multi Medika Internasional or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Medika Internasional vs. Weha Transportasi Indonesia
Performance |
| Timeline |
| Multi Medika Interna |
| Weha Transportasi |
Multi Medika and Weha Transportasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Medika and Weha Transportasi
The main advantage of trading using opposite Multi Medika and Weha Transportasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Medika position performs unexpectedly, Weha Transportasi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Weha Transportasi will offset losses from the drop in Weha Transportasi's long position.| Multi Medika vs. Gozco Plantations Tbk | Multi Medika vs. Integra Indocabinet Tbk | Multi Medika vs. J Resources Asia | Multi Medika vs. Bhuwanatala Indah Permai |
| Weha Transportasi vs. PT Temas Tbk | Weha Transportasi vs. Dosni Roha Indonesia | Weha Transportasi vs. Rig Tenders Tbk | Weha Transportasi vs. Samudera Indonesia Tbk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |